What Is Included in Direct Labor for GAAP?
For example, workers at a factory who assemble, machine, paint or otherwise help to physically produce products perform direct labor. Similarly, workers at a salon who actually perform haircuts, treatments and other services are involved in direct la...
Direct Cost
For example, with Ford, the direct costs associated with each vehicle include tires and steel. However, the electricity used to power the plant is considered an indirect cost because the electricity is used for all the products made in the plant. Tig...
Projecting Income Statement Line Items
While companies still debit income tax expense and credit income tax payable, the difference between the two accounts requires an additional debit entry to the so-called deferred tax asset to balance the total journal entries. All companies and indiv...